What Is Full Coverage Car Insurance?

If you've ever wondered “what is full coverage car insurance?”, you're not alone. While the term is widely used, it does not describe one specific insurance coverage. Instead, “full coverage” generally refers to a combination of liability, collision, and comprehensive coverage. Depending on the insurance company and the policy you choose, the other coverages included may vary. 

At Kemper Auto, we help drivers understand their options so they can choose auto insurance coverage that fits their vehicle, budget, and driving needs. If you're considering full coverage car insurance, it's helpful to know what it typically includes, who may benefit from it, what factors affect the cost, and how to compare full coverage car insurance quotes before you make an important decision. 

What Does Full Coverage Car Insurance Cover? 

While many people use the phrase "full coverage," there is no universal definition, and the coverages included can vary by insurer and policy. Together, these coverages can help pay for damage you cause to others, repairs to your own vehicle after a covered collision accident, and losses caused by events such as theft, vandalism, fire, or severe weather. Kemper Auto has experience helping drivers understand their options and customize coverage that meets their needs. 

For more information about Kemper’s auto insurance coverage, explore our coverage options and see how we can help you find the policy that fits your budget. 

What Does Full Coverage Car Insurance Mean? 

Although the phrase sounds like it covers every possible situation, it does not, and it is not an official insurance product. Instead, it usually describes a policy that combines three core types of coverage. Understanding each one can help you decide what is considered full coverage car insurance for your situation. 

According to the National Association of Insurance Commissioners (NAIC), liability, collision, and comprehensive coverage each serve a different purpose and work together to address different types of losses. 

1. Liability coverage 

What it helps pay for: Liability coverage helps pay for injuries and property damage you cause to other people if you are responsible for an accident. It may help cover medical expenses, lost wages, legal costs, and repairs to another person's vehicle or other damaged property. 

• Who it helps: Other drivers, passengers, pedestrians, and property owners if you are found at-fault. 

• Required or optional: Most states require drivers to carry at least a minimum amount of liability insurance. 

• Example claim: You accidentally rear-end another vehicle at a stoplight. Liability coverage may help pay for the other driver's vehicle repairs and medical expenses if you're found at fault. 

2. Collision coverage 

What it helps pay for: Collision coverage helps pay for repairs or replacement of your vehicle after a covered accident, regardless of who caused it. This includes collisions with another vehicle or objects such as trees, fences, guardrails, or utility poles. 

• Who it helps: You and your vehicle. 

• Required or optional: Collision coverage is generally optional under state law, but lenders and leasing companies often require it for financed or leased vehicles. 

• Example claim: You slide on a wet road and hit a guardrail. Collision coverage helps pay for repairs to your vehicle after your deductible. 

3. Comprehensive coverage

What it helps pay for: Comprehensive insurance helps pay for damage caused by events other than a collision. Covered losses may include theft, vandalism, fire, hail, flooding, falling objects, and damage caused by animals. 

• Who it helps: You and your vehicle. 

• Required or optional: Comprehensive coverage is usually optional unless required by a lender or leasing company. 

• Example claim: A hailstorm damages your parked vehicle, or a tree branch falls onto your car during a storm. Comprehensive coverage helps pay for repairs after your deductible. 

When people ask what is considered full coverage car insurance, they are generally referring to a policy that combines liability, collision, and comprehensive coverage. However, every insurance company defines coverage differently, so it's important to review your policy and discuss your options with your insurance provider before choosing coverage. 

Additional Coverages Often Added to Full Coverage Policies 

While liability, collision, and comprehensive coverage are commonly associated with full coverage, many drivers choose to add other coverages for broader financial support after certain types of losses. These options are generally purchased separately and are not automatically included in the traditional definition of full coverage. 

Coverages that are commonly required 

• Bodily injury liability (BI) 

• • Helps pay for injuries you cause to other people in an at-fault accident. 

  • Often includes medical expenses, lost wages, and legal costs.

  • Most states require minimum bodily injury liability limits. 

• Property damage liability (PDL) 

  • Helps pay for damage you cause to another person's vehicle or other property. 

  • Most states require drivers to carry minimum property damage liability coverage. 

Optional coverages many drivers choose 

Uninsured and underinsured motorist coverage (UM/UIM): Helps pay for covered injuries or damage if you're involved in an accident with an at fault driver who has little or no insurance. This coverage is required in some states. 

• Medical payments coverage: Helps pay certain medical expenses for you and your passengers after a covered accident, regardless of fault. Some states require this coverage. 

• Roadside assistance: May provide services such as towing, battery jump-starts, flat tire changes, fuel delivery, and lockout assistance. 

• Rental reimbursement coverage: Helps pay for a rental vehicle while your covered vehicle is being repaired after a covered claim. 

These optional insurance coverage choices can provide additional financial support depending on your driving habits, vehicle, and budget. Your Kemper Auto representative can help explain which options are available in your state and how they work alongside your primary coverages. 

Who Should Consider Full Coverage Car Insurance? 

Whether full coverage is the right choice depends on your vehicle, financial situation, and personal preferences. While every driver's needs are different, there are several situations where full coverage car insurance may make sense. 

Drivers with new vehicles 

If you've recently purchased a new car, repairing or replacing it after an accident or other covered loss could be expensive. Full coverage may help with those costs by combining liability, collision, and comprehensive coverage. 

Drivers with financed vehicles 

If you're financing a vehicle, your lender will often require collision and comprehensive coverage until the loan is paid in full. This requirement helps preserve the vehicle's value while it serves as collateral for the loan. 

Drivers with leased vehicles 

Leasing companies typically require drivers to carry collision and comprehensive coverage throughout the lease term. Some lease agreements may also require specific coverage limits or deductibles, so it's important to review your contract carefully.

Drivers with higher-value vehicles 

The more valuable your vehicle is, the more expensive it may be to repair or replace after a covered loss. Full coverage may help reduce out-of-pocket costs if your vehicle is damaged in a covered accident or by a non-collision event such as hail or theft. 

Drivers who rely on their vehicle every day 

If replacing your vehicle after a major loss would create financial hardship, full coverage may be worth considering. For many people, a vehicle is essential for commuting to work, taking children to school, running a business, or completing daily errands. 

Ultimately, having the knowledge of what full coverage involves helps you understand the coverages included. It also means evaluating how much financial risk you're comfortable taking if your vehicle is damaged or declared a total loss. 

When Might Liability-Only Coverage Be Enough? 

Full coverage is not the right choice for every driver. In some situations, liability-only insurance may better align with a vehicle's value and an owner's financial goals. 

For example, some drivers choose liability-only coverage when: 

• Their vehicle has a relatively low market value. 

• The vehicle is nearing the end of its useful life. 

• They could comfortably pay to repair or replace the vehicle themselves after a loss. 

• They no longer have a loan or lease requiring collision and comprehensive coverage. 

When comparing full coverage versus liability, it's helpful to consider the value of your vehicle alongside the cost of carrying additional coverage. If repairing or replacing your vehicle would cost less than the premiums for collision and comprehensive coverage over time, liability-only insurance may be an option worth discussing with your insurance professional. 

Every insurance decision is personal. Reviewing your vehicle's current value, your budget, and your financial priorities can help you determine which coverage best fits your needs. 

Full Coverage Car Insurance Quotes and Cost Factors 

If you're shopping for full coverage car insurance quotes, you'll likely notice that prices can vary significantly from one driver to another. That's because insurance companies consider several factors when calculating policy premiums. 

Some of the most common factors include: 

• Your driving history, including accidents and traffic violations. 

• Your years of driving experience. 

• Where you live and where your vehicle is primarily driven. 

• Your vehicle's make, model, year, and overall value. 

• Your selected coverage limits. 

• The deductible you choose for collision and comprehensive coverage. 

• Your previous claims history. 

• State insurance requirements. 

In general, full coverage costs more than liability-only insurance because it includes additional coverages for your own vehicle. Collision and comprehensive coverage increase the insurer's potential claim costs, which is reflected in the premium. 

Comparing full coverage car insurance quotes from a trusted insurer can help you understand your options. It's also important to compare more than price alone. Consider policy features, available discounts, customer service, claims support, and the financial strength of the insurance company when evaluating coverage. 

Ready to compare options? Get a quote online to explore coverage choices that fit your needs. 

Why Choose Kemper Auto for Full Coverage Auto Insurance? 

For more than 100 years, Kemper has helped drivers find auto insurance solutions that fit their unique needs. The company has earned an A+ rating from the Better Business Bureau and remains committed to providing personalized coverage options at competitive rates. 

Kemper Auto offers flexible full coverage auto insurance options, dependable financial stability, and Spanish-bilingual support in most areas, making it easier for more drivers to understand their coverage choices. Whether you're purchasing insurance for a new vehicle, comparing policy options, or reviewing your current coverage, Kemper Auto can help you explore your coverage options that fit your budget and driving needs. 

You can learn more about Kemper on our website. 

Frequently Asked Questions About Full Coverage Car Insurance 

What is full coverage car insurance? 

Full coverage generally refers to a policy that combines liability, collision, and comprehensive coverage. It is not an official single insurance product, and the exact definition can vary by insurance company and policy. 

What does full coverage car insurance cover? 

In most cases, it includes liability coverage for injuries or property damage you cause to others, collision coverage for damage to your own vehicle after an accident, and comprehensive coverage for non-collision losses such as theft, vandalism, fire, hail, flooding, or damage caused by animals. Additional coverage may also be available, depending on the policy you choose.

Does full coverage insurance include a rental car? 

Not necessarily. Rental reimbursement coverage is typically an optional add-on. If you want help paying for a rental vehicle while your covered car is being repaired after a covered claim, you'll usually need to add this coverage to your policy. If you rent a vehicle while on vacation and want your auto insurance policy to extend coverage to that rental in the event of a collision or other covered loss, contact your insurer to verify whether your policy provides coverage. 

Is full coverage required by law? 

No. Most states require drivers to carry a minimum amount of liability insurance. Collision and comprehensive coverage are generally optional unless your lender or leasing company requires them. 

Do financed cars require full coverage? 

In many cases, yes. Lenders commonly require collision and comprehensive coverage until your vehicle loan is paid in full. Be sure to review your loan agreement for any insurance requirements. 

How can I get full coverage car insurance quotes? 

Drivers can request full coverage car insurance quotes online, work with a licensed insurance agent, or contact Kemper Auto to compare coverage options, available discounts, and pricing. 

Get Full Coverage Car Insurance Quotes 

Finding the right auto insurance starts with understanding your options. Whether you're buying insurance for the first time, replacing an existing policy, or comparing coverage for a new vehicle, Kemper Auto makes it easy to explore plans that fit your needs and budget. 

You can request quotes online using Kemper Auto's get a quote tool. If you'd rather speak with someone, you can also find an agent near you. A local Kemper Auto agent can answer your questions, explain your coverage options, and help you compare policies to find one that aligns with your needs and budget.